Transport for London shreds LogicaCMG contract

Exclusive Transport for London (TfL) and LogicaCMG have binned a troubled multimillion pound IT outsourcing contract..

The termination affects the authority-wide provison of desktop computing. In a joint statement given to The Register, the pair said: "Over the last year TfL has been reviewing the its IT demands of the business...TfL and LogicaCMG agreed to an early exit from desktop services."

A TfL spokesman said further details could not be given, but that it did intend to continue to working with LogicaCMG on a range of other outsourced functions.

TfL said the decision was the result of an ongoing review process, but according to Register sources, Anglo-Dutch LogicaCMG had failed to meet its service level agreements. The authority had been threatening to terminate the relationship for as long as six months for breach of contract, we understand.

TfL's Board meeting agenda from May this year reveals (.PDF, item 7.5) the parties were in dispute over payment.

The news of LogicaCMG's loss breaks a day after outsourcing rival Capita won an extension to its TfL contract to provide the IT behind the London Congestion Charge. ®